Home / Knowledge / News / Apparel/Garments / Apparel retailer Wet Seal shuts down 338 of 511 stores
Apparel retailer Wet Seal shuts down 338 of 511 stores
08
Jan '15
Specialty womenswear retailer, The Wet Seal said it was closing 338 retail stores or around 66 per cent of its store count, effective on or about January 7, 2015.

The apparel retailer decided to close the stores after assessing its overall financial condition and its inability to successfully negotiate meaningful concessions from its landlords.

The store closures have resulted in the termination of approximately 3,695 full and part-time employees.

Wet Seal estimates that the 338 retail stores which were closed represented approximately 48 per cent of its net sales for the nine months ending on November 1, 2014.

Following the store closures, the Company expects to operate approximately 173 retail stores and its internet business.

The retailer expects to incur estimated pre-tax charges of between $5.4 million to $6.4 million, including costs associated with inventory write-off, asset impairments and employee terminations.

Charges associated with inventory write-off are estimated to range from $2.5 million to $3.5 million.

While, charges associated with asset impairments, consisting primarily of write-offs of fixtures, furniture and equipment at the impacted stores are estimated to be approximately $2.2 million.

Charges associated with employee severance and other one-time termination costs arising from the store closures are estimated to be approximately $0.7 million.

“Such estimates do not include any claims or demands which may be made by the landlords of the impacted stores for unpaid rent or otherwise,” Wet Seal said.

Wet Seal informed that the charges are estimates and the actual charges may vary materially based on various factors, some of which may be beyond its control.

CEO Ed Thomas said, "This was a very difficult decision to make, but after reviewing many other options, our financial condition leaves us no other alternative than to close these stores.”

“This is an extremely difficult time for the entire Wet Seal team, and we are doing everything we can to protect the interests of all of our stakeholders, including our employees,” he added. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Courtesy: Brook Brothers

Apparel/Garments | On 29th May 2017

America's Brooks Brothers added to CLiQ

Tata CLiQ Luxury, Tata group’s multi-brand, luxury e-commerce...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search